Cantor Fitzgerald LP, an investment bank, has announced plans to allocate $2 billion to venture into the Bitcoin financing sector. The company’s Chairman and CEO, Howard Lutnick, made the announcement at a Bitcoin conference in Nashville, Tennessee. During his speech, Lutnick compared Bitcoin to gold, saying that the cryptocurrency should be free to trade globally. He also mentioned that Cantor already holds a substantial amount of Bitcoin and emphasized the firm’s commitment to supporting Bitcoin’s free trade. Cantor’s new business will collaborate with selected Bitcoin custodians, though specific partners and launch timeline were not disclosed. Once the initial $2 billion is utilized, Cantor plans to increase its allocation in additional $2 billion increments to sustain the business.
In addition to its new Bitcoin financing business, Cantor also serves as a custodian for Tether Holdings Ltd., the issuer of the USDT stablecoin, which has about $114 billion in circulation. The firm has also secured substantial financing for digital asset companies, including cryptocurrency miners such as Bitdeer, TeraWulf, Riot Platforms, and Cipher Mining. The conference where Cantor announced its new Bitcoin financing business featured Republican presidential candidate Donald Trump, who was expected to outline a plan for the US government to amass a significant Bitcoin reserve, according to his opponent, Robert F. Kennedy Jr. This proposal could become a key aspect of Trump’s appeal to the crypto industry.
Jersey City’s municipal pension plan, the Employees Retirement System of Jersey City, in New Jersey, is set to allocate part of the city’s pension fund to crypto ETFs. The pension fund is currently navigating regulatory requirements with the SEC to integrate a portion of its assets into Bitcoin ETFs. While specific details regarding the percentage of pension funds allocated to Bitcoin ETFs remain undisclosed, Mayor Fulop hinted that Jersey City’s approach would mirror Wisconsin’s state pension fund, which committed a 2% allocation to Bitcoin ETFs earlier this year. Quantitative fund Kbit believes that greater returns lie within the digital asset space itself as hedge funds turn to traditional strategies like the basis trade to capitalize on the recent surge of crypto ETFs.
Ed Tolson, founder and CEO of Kbit, emphasized the importance of engaging with centralized crypto exchanges and trading various crypto instruments, including tokens, perpetual swaps, and derivatives. Jersey City’s decision to allocate part of its pension fund to crypto ETFs reflects a growing trend of institutional adoption of digital assets. As more companies and institutions like Cantor Fitzgerald LP and the municipal pension plan of Jersey City explore opportunities in the cryptocurrency space, the industry continues to gain legitimacy and acceptance in the traditional financial world. With the support of established institutions and regulatory compliance, Bitcoin and other cryptocurrencies are gradually becoming mainstream investment options for a wider range of investors.
